Cardano Rebounds With 12% As Price Nears Resistance, Is $0.5 Possible?

• ADA’s price shows strength as price bounces from a downtrend with strong volume as price eyes a rally to $0.5.
• ADA faces rejection to trend higher above $0.4 as the price faced a sharp rejection below key resistance.
• The price of ADA continues to hold strong below the 50 Exponential Moving Average (EMA) as the price aims to rally past key areas.

The price of Cardano (ADA) has continued to hold strong as price trends toward the region of $0.4, facing rejection to trend higher to a region of $0.5. The crypto market has looked more decent this week, with Bitcoin (BTC) and Ethereum (ETH) showing some great price movement in recent times. This new relief rally across the crypto market has positively impacted smaller coins like Cardano (ADA) as price rallied from its downtrend movement to a high of $0.4 as price attempted to break its key resistance. (Data from Binance)

Related Reading: Reasons Behind The Bitcoin Price Rally – Is It Sustainable?

Although many altcoins have struggled to trend in a range market, the price of ADA has seen more of a downtrend move as the price of ADA dropped from a high of $3 to $0.3, seeing more than a 70% decline in its price.

ADA’s price recently declined from an all-time high of more than $3 to a region of $0.75 before rallying to a high of $1.3. ADA’s price faced resistance from $1.3 to breaking higher.

After the price of ADA was rejected at $1.3, it fell to a region of $0.4, where it appeared to have formed strong Support and, most likely, a demand zone for future buy orders, but this wasn’t the case as the price dropped a bit further to a weekly low of $0.35. The price of ADA rallied from $0.35 to a high of $0.4 as the price aimed to go higher to $0.5.

The overall structure of ADA appears to be favorable, with a high probability of price retesting the $0.5 and higher ranges. If ADA fails to break and hold above $0.43, we may see a retest of $0.35.

Weekly resistance for the price of ADA – $0.45-$0.5.

Weekly Support for the price of ADA – $0.35.

In the daily timeframe, the price of ADA continues to hold strong and trade above the key Support formed at $0.35 after the price rallied from its daily low, with the current market looking favorable for most crypto assets. 

The price of ADA needs to break and hold above 50 EMA, acting as a strong resistance to the price of ADA. The price of $0.4 corresponds to the value of 50 EMA, acting as resistance for the price to break higher to a region of $0.5. 

Daily resistance for the ADA price – $0.42.

Daily Support for the ADA price – $0.35.